Sustainability evolving from compliance exercise to business growth strategy, say industry leaders

Sustainability is increasingly becoming a core business imperative rather than a compliance requirement, with companies and governments embedding climate action, resilience and community development into long-term growth strategies, speakers said at a session titled 'Sustainability as a Business Purpose' at BT India's Most Sustainable Companies Summit and Awards.

Ankit Todi, Chief Sustainability Officer at Mahindra Group, said the conglomerate has redefined its long-term vision around becoming a "planet positive" company through a multi-pronged strategy that integrates sustainability into business operations and future growth plans.

"The first aspect is how you look at your environmental impact, right from the energy that you use, water, waste and material consumption," Todi said.

The second pillar, he noted, focuses on embedding climate action into business strategy. Mahindra's automotive business is expanding its electric vehicle portfolio, while its real estate arm is developing green buildings and its hospitality business is investing in environmentally sustainable resorts. The group has also built a significant renewable energy portfolio.

"Sector by sector, how do you sell a green product or a clean service, or in some cases enable a transition? That's really the core of the future, and this part of the business is actually growing much faster than the rest of it," he said.

Todi added that climate adaptation has emerged as another critical priority as India grapples with rising temperatures, water stress and other climate-related challenges. Sustainable construction practices, including recycled water usage, low-carbon materials and environmentally conscious design, are being incorporated across projects to improve long-term value.

For consumer goods companies, sustainability is increasingly intertwined with supply-chain resilience. Yashika Singh, Chief Corporate Affairs Officer and Sustainability Head for PepsiCo India and South Asia, said the company views sustainability as a competitiveness issue because of its deep dependence on agriculture.

"PepsiCo is an agri company," Singh said. "A lot of our raw materials come from agriculture, whether it is potatoes, millets or rice. For us, sustainability is not so much about compliance, it is more about competitiveness."

The company works with around 36,000 farmers across India, providing seeds, technical support and market access while promoting regenerative agricultural practices aimed at mitigating climate-related risks.

According to Singh, PepsiCo's initiatives focus on improving soil health, increasing water-use efficiency through micro-irrigation and adopting practices such as mulching and composting. In Gujarat and Maharashtra, all farmers associated with the company have adopted micro-irrigation systems.

The company has also established soil-testing centres and works across more than 200 villages to provide scientific support to farmers. "We have already delivered regenerative agriculture across 16,000 acres," Singh said.

She added that sustainability and supply-chain management have become inseparable for the company. "Mitigating supply-chain risk means doing all of these things and ensuring that over the long term we are building resilience in our supply chain," she said.

From the public sector perspective, Tanuja Pandey, Adviser, Maharashtra Tourism, argued that sustainability should extend beyond symbolic measures such as green branding or isolated environmental policies.

"Sustainability today is not just about changing a company logo to green or saying we will not use certain materials in our marketing activities," Pandey said. "It is about balancing economic gains with conservation, community well-being and preservation."

She said Maharashtra is developing sustainable tourism frameworks that place local communities and environmental conservation at the centre of tourism development.

"While we talk about carbon footprints and climate action, community development and conservation are among the most important pillars of sustainability," she said.

Maharashtra is focusing on responsible tourism across its diverse natural and cultural assets, including its 878-km coastline, the biodiversity-rich Sahyadri mountain range and seven UNESCO World Heritage sites.

Pandey said the state is addressing challenges such as overcrowding, visitor management and public awareness while promoting more mindful tourism practices.

The government is also encouraging tourism development in smaller districts through homestays, eco-tourism and agro-tourism initiatives, creating economic opportunities for local communities while reducing pressure on established tourist destinations.

"Our focus is on sustainable and responsible tourism," she said. "We are developing smaller districts with homestays, eco-tourism and agro-tourism, and Maharashtra is leading that space."

The discussion underscored how sustainability is increasingly being integrated into business models, supply chains and public policy, with organisations viewing it not merely as an environmental obligation but as a pathway to long-term growth, resilience and value creation.

Neha Aggarwal Jain, partner at Deloitte India, said AI is definitely going to bring a lot more predictability, sustainability, and bringing all the ecosystems together. "What we're really looking at is that what is the fundamental business model that gets developed, which is sustainable, but at the same time it brings in more cost optimisation, it's having a longevity, and at the same time it brings in more people together," said Jain.